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02/06/2008

China’s Semiconductor Market – Expected to Surpass $28 Billion in 2011 – Is a Must for Semiconductor Suppliers, IDC Finds

FRAMINGHAM, MA – February 6, 2008 – Driven by computing and consumer electronics demand, IDC predicts that the Chinese semiconductor market will surpass $28 billion in 2011. Yet Chinese semiconductor manufacturing technologies continue to lag behind those in the United States, Japan, Korea, and Taiwan. To capture a share of China’s growing domestic market, semiconductor suppliers must include China as part of their global strategy to improve their competitiveness worldwide.

"China is an attractive market with opportunities and challenges," said Patrick Liao, research manager, Asia/Pacific Semiconductors at IDC. "To be successful, semiconductor vendors must keep in mind the dynamic characteristics of the Chinese market and the strong influence of the local government on business practices and policies. Local support and expertise, appropriate partnerships with leading domestic OEMs, and workforce localization will give semiconductor vendors an advantage in competing for future business,"

* The 3G launch in China is critical to maintain market momentum in the mobile phone arena.

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About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 900 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 90 countries worldwide. For more than 43 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com .